1800FLOWERSCOM (FLWS) delivered a difficult but improving FY2024, with a modest full-year revenue decline accompanied by a meaningful gross-margin recovery and disciplined cost management. Management underscored that 2024’s margin rebound was the defining story, offset by ongoing top-line pressure driven by a challenging macro discretionary-spending environment. The company highlights a multi-brand strategy and ongoing Relationship Innovation as the core engine for revenue improvement in fiscal 2025 and beyond. Management also signaled that wholesale orders and strategic acquisitions will support top-line trends, while marketing investments and higher incentive compensation load will temper near-term profitability before the leveraged growth from the platform materializes.
Looking forward, FLWS targets flat-to-low-single-digit revenue growth in FY2025 with adjusted EBITDA in a range of $85–$95 million and free cash flow of $45–$55 million. The guiding premise is a reaccelerating top line driven by Relationship Innovation, portfolio expansion (e.g., Scharffen Berger, Things Remembered), strengthened corporate gifting via SmartGift, and improved last-mile delivery. However, the outlook is contingent on macro consumer confidence, commodity cost normalization (notably cocoa), and the efficacy of higher marketing spend. Investors should monitor wholesale trajectory, procurement costs, and the ROI of marketing investments as primary indicators of how quickly the top line may reaccelerate.